What are dynamic bids down only on Amazon?
Dynamic bids down only on Amazon allow Amazon to reduce your bid in real time when an ad opportunity appears less likely to convert. Amazon does not raise the base bid under this strategy, although placement adjustments can still increase the effective maximum for selected placements. Suppose a hair dryer keyword has a £1.00 base bid. Amazon may keep the bid near £1.00 for a promising opportunity but reduce it to £0.65, £0.30, or another amount when its signals suggest a lower chance of conversion. The reduction happens auction by auction, so one base bid can produce different effective bids. Amazon uses its own signals to estimate conversion likelihood, but it does not publish every factor or guarantee that each prediction will be correct. Your actual CPC is still auction-based and can be lower than the effective bid entered. Down-only is a practical default for new campaigns, discovery campaigns, uncertain targets, and accounts focused on controlling ACoS. It lets the advertiser set the maximum base bid while giving Amazon room to reduce bids where conversion appears less likely. It can also suit mature campaigns where you want automation to limit weaker opportunities without allowing automatic bid increases. However, a bid set too high can still produce expensive clicks, and a bid set too low may struggle to win useful impressions. Down-only cannot improve an irrelevant target, weak offer, poor listing conversion, insufficient budget, or uncompetitive base bid. It may reduce spend in lower-quality auctions, but it does not know your exact profit margin or target ACoS unless your bidding decisions reflect those limits. Placement adjustments also require attention. If a campaign has a large top-of-search increase, the effective bid for that placement can exceed the base bid even though the dynamic strategy itself only moves bids down. Calculate the combined maximum before applying aggressive placement percentages.
Dynamic bids down only let Amazon reduce your bid when a conversion appears less likely. Learn how the strategy works and when to use it.